UAE's Shah gas project launch faces delay

The UAE's Shah gas project will not be operational until early 2015, the head of the Abu Dhabi National Oil Company (ADNOC) said on Monday, confirming the multi-billion dollar development was behind schedule.

Abu Dhabi energy officials have previously said the project to produce usable gas from Shah's high-sulphur reserves would be completed in late 2014. The project's website also says production should start in 2014.

"There is normal progress, the start up and coming (online) time for such a plant takes time," he said on the sidelines of an energy conference in Abu Dhabi on Monday. He added the company was now targeting a startup in early 2015.

The technically challenging plan to process around 1 billion cubic feet a day (bcf/d) of sour gas into 0.5 bcf/d of usable gas in a remote desert area is vital for keeping the UAE supplied with fuel and reducing its growing gas imports.

As well as gas for industry and power generation, Shah will produce significant volumes of condensate, a light oil that can be used to make vehicle fuels.